• / Free eNewsletters & Magazine
  • / My Account
Home>UPDATE: Whirlpool scores victory in battle against South Korean washing-machine makers

UPDATE: Whirlpool scores victory in battle against South Korean washing-machine makers

UPDATE: Whirlpool scores victory in battle against South Korean washing-machine makers

10/06/2017

By Ciara Linnane, MarketWatch

Appliance maker was seeking to stop Samsung and LG Electronics from flooding the market with washing machines

Whirlpool Corp. scored a victory Thursday in a battle with foreign makers of washing machines.

The U.S. International Trade Commission (USITC) (https://www.usitc.gov/press_room/news_release/2017/er1005ll841.htm) determined there are so many large residential washing machines coming into the U.S. that it is threatening domestic players. The determination came after Whirlpool (WHR) filed a petition in May, under Section 201 of the Trade Act of 1974, seeking to stop Samsung Electronics Co. Ltd. (005930.SE) and LG Electronics Inc(066570.SE) from flooding the market with their appliances.

Section 201 "provides that if the U.S. International Trade Commission (the Commission) determines that an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article," the president can take action to address the imbalance, the USITC said (https://www.usitc.gov/documents/201_factsheet_washers_final.pdf)in a statement.

The commission launched an investigation of the issue in June that resulted in a 4-0 vote. The USITC will hold a public hearing on Oct. 19 and will present a report to President Donald Trump by December 4. Trump will be responsible for the final decision on whether to offer relief to the U.S. industry and what kind of relief may be offered.

The commission will consider recommending such moves as an increase in a duty, a quota, a tariff-rate quote, trade adjustment assistance or any combination of the above.

Whirlpool welcomed the vote and said it's an important win for American manufacturers and American workers.

©2017 Morningstar Advisor. All right reserved.